KKR & Co. Securities Fraud Investigation
Analysis based on 19 articles · First reported Mar 03, 2026 · Last updated Mar 10, 2026
The market reacted negatively to the news of FS KKR Capital Corp.'s dividend cut and the subsequent investigation into KKR & Co., causing KKR & Co.'s stock price to fall. This event highlights potential risks in the private credit sector and could lead to increased scrutiny of investment management firms.
Pomerantz LLP has launched an investigation into KKR & Co. for alleged securities fraud and unlawful business practices. This follows the announcement that FS KKR Capital Corp., a private credit fund managed by KKR & Co., significantly cut its dividend from $0.70 to $0.48 per share. The dividend reduction was attributed to 'specific challenges associated with a few investments,' with approximately 3.4% of FS KKR Capital Corp.'s portfolio, valued at around $440 million, being on non-accrual at year-end. Following this news, KKR & Co.'s stock price dropped by $8.95 per share, or 9.26%, over two trading sessions, closing at $87.68 per share on February 27, 2026.
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